From: Susan Minehart [sminehart@onebox.com]
Sent: Thursday, April 18, 2002 11:27 AM
To: rule-comments@sec.gov
Subject: Capping Executive Compensation
Dear Sir/Madam,
I hope you agree executive compensation has often gotten 'out of line'
and not consistent with protecting shareholders equity.
We have a system where compensation committees consist of 'friends' of
executives and consequently have a bias towards recommending higher
compensation. Compensation committee also have ratcheting UP effect by
always looking at compensation for executives at other companies.
What we need are SEC rules/regulations that ensure top management is
not rewarded excessively as compared to the workforce in public companies.
Examples: No person gets cash compensation greater than 100 times the
median cash compensation for that company in any given year.
Stock options issued for any person must not exceed 1000 times
the average stock option awarded to all employees in that year (yes,
this number would include those that did not get any options).
I think these limits provide sufficient rewards for top management that
is interested in doing a job.
The current system for executive compensation isn't working - so we need
laws/regulations to ensure shareholders interests are protected.
Will you please ensure the SEC creates such regulations asap?
--
Susan Minehart
sminehart@onebox.com - email
(678) 353-2300 x7761 - voicemail/fax